Zacks Bull and Bear of the Day Highlights: Saks, Merge Healthcare, Tiffany & Company, Signet Jewelers and Zale Corp
CHICAGO, Aug. 29, 2011 /PRNewswire/ -- Zacks Equity Research highlights Saks, Inc. (NYSE: SKS) as the Bull of the Day and Merge Healthcare's (Nasdaq: MRGE) as the Bear of the Day. In addition, Zacks Equity Research provides analysis Tiffany & Company (NYSE: TIF), Signet Jewelers Limited (NYSE: SIG) and Zale Corporation (NYSE: ZLC).
(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)
Full analysis of all these stocks is available at http://at.zacks.com/?id=2678.
Here is a synopsis of all five stocks:
Saks, Inc. (NYSE: SKS) has upgraded its recommendation to Outperform from Neutral, following the better-than-expected second-quarter 2011 results. The company is driven by strong same-store sales growth and gross margin expansion.
Moreover, the company is optimistic going forward that the sales growth across store formats will be supported by its merchandising, service and marketing initiatives. Further, the company intends to be very strategic in its SG&A spending, inventory management and capital expenditure investments.
Our six-month target price of $11.00 per share equates to about 32.4x of earnings estimate for 2012. This target price implies the expected total return of 21.4% over that period.
Merge Healthcare's (Nasdaq: MRGE) growth prospects are highly dependent on capital investments by hospitals for advanced imaging solutions, which are in turn tied to general economic conditions. Moreover, declining Medicare reimbursements could negatively affect hospital and imaging clinic revenue, which could reduce demand for software and services offered by Merge.
Although there is immense potential in the diagnostic imaging market, we remain concerned about the competitive scenario and macroeconomic headwinds. The presence of many big players like GE and McKesson has made the diagnostic imaging market highly competitive.
These headwinds compelled us to maintain the stock at Underperform with a target price of $5.25. Our target price corresponds to a price-to-book multiple of 8.1.
Latest Posts on the Zacks Analyst Blog:
Tiffany Keeps Shining Brightly
Tiffany & Company (NYSE: TIF) posted better-than-expected second-quarter 2011 results buoyed by improved demand for luxury items worldwide and consequently raised its full year outlook. The quarterly earnings of 86 cents a share surpassed the Zacks Consensus Estimate of 70 cents, and rose substantially from 55 cents earned in the prior-year quarter.
The Zacks Consensus Estimate rose by a penny over the last 30 days with only 2 out of 17 analysts covering the stock revising the estimates upward, and none lowering the projections. On a reported basis, including one-time items, quarterly earnings came in at 69 cents a share compared with 53 cents delivered in the prior-year quarter.
Tiffany, which faces stiff competition from Signet Jewelers Limited (NYSE: SIG) and Zale Corporation (NYSE: ZLC), posted net sales of $872.7 million during the quarter, up 30% from the prior-year quarter, on the heels of – stellar performance of stores in Americas, Asia-Pacific, Japan and European regions, healthy comparable-store sales growth and new collection launches.
Total revenue also handily beat the Zacks Consensus Estimate of $787 million. Comparable-store sales climbed 28% in the quarter under review. In constant currencies net sales jumped 24% and comps grew 22%.
Get the full analysis of all these stocks by going to http://at.zacks.com/?id=2649.
About the Bull and Bear of the Day
Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.
About the Analyst Blog
Updated throughout every trading day, the Analyst Blog provides analysis from Zacks Equity Research about the latest news and events impacting stocks and the financial markets.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous analyst coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=7158.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment
Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=4582.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
[email protected]
http://www.zacks.com
SOURCE Zacks Investment Research, Inc.
Share this article